But business leaders welcomed the Budget. Institute of Directors chief Miles Templeman said: ‘ George Osborne has faced up to the challenge.

‘The economy needed faster and deeper deficit reduction and that’s exactly what he has delivered.’

Union leaders echoed Ms Harman’s analysis, saying the Budget would lead to job losses and the innocent paying for the excesses of the bankers.

Meanwhile, the British Heart Foundation said it was ‘disappointed’ with the decision not to raise tax on tobacco. And Save The Children said the £2billion extra promised to the poorest families in child tax credits could be wiped out by other measures announced by Mr Osborne.